5 Cheap DRIP Stocks to Buy Now

1. Verizon Communications Inc. (NYSE:VZ)

Forward P/E: 9.03

On March 31, Barclays raised its price recommendation on Verizon Communications Inc. (NYSE:VZ) to $47 from $43. It reiterated an Equal Weight rating on the shares. The firm said pricing across both wireless and broadband is starting to trend lower. Even so, telecom stocks have held up, with the analyst noting they are being treated as “defensive longs due to macro backdrop which makes earnings set-up asymmetric.”

On March 30, Reuters reported that a federal judge granted Verizon Wireless a preliminary injunction blocking rival T-Mobile from running ads that promised consumers more than $1,000 in annual savings for switching carriers. U.S. District Judge Lewis Kaplan said Verizon is likely to succeed in its claim that T-Mobile’s “Save Over $1,000” campaign amounted to false advertising and could cause irreparable harm. He added that granting the injunction would support the public interest by promoting truthful advertising and “ensuring that what consumers see is what they get.” T-Mobile and its legal team did not immediately respond to requests for comment.

In its February 4 lawsuit, Verizon argued that T-Mobile compared its promotional pricing to Verizon’s standard rates and overstated the value of services that “the other guys leave out.” T-Mobile filed a countersuit on March 2, saying Verizon’s campaign featuring George Washington, Abraham Lincoln, and Benjamin Franklin was misleading, arguing the company could not promise a “better deal” for T-Mobile or AT&T Mobility customers.

Verizon Communications Inc. (NYSE:VZ)  operates as a holding company that, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government clients.

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